Credit-card fees are rising

MarshallLoeb and Brendan January

NEW YORK (CBS.MW) -- Credit-card companies have recently raised their fees and cut their grace periods, pushing the potential costs of misusing a card higher.

With interest rates at historic lows and few credit-card companies charging annual fees, companies are bringing in more and more revenue from fees levied on those who exceed their balances or don't pay on time. Fees now account for 39 percent of the credit-card companies' income, up from 28 percent in 2000, The Wall Street Journal reported.

You can avoid these fees by using your card according to the rules, but be aware that the rules themselves have grown stricter.

For example, payment grace periods have dropped from an average of 30 days to 21 days over the past 10 years.

Also be aware that fees for transfers and late payments have risen steadily. Credit-card companies will take in an additional $1 billion in fees -- up to $13 billion overall -- this year.

For people who use their cards responsibly, the greatest danger is simply forgetting to make a payment. To avoid this, keep your credit-card use simple. If possible, carry no more than two cards, use one regularly, and try to pay immediately or within a week of a bill's arrival.

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